News

May 15, 2015

HSBC sets up £8 billion loan fund for UK SMEs

HSBC has set up a new national fund worth £8 billion aimed at start-ups and established small firms.

This new lending provision will be allocated in 43 local tranches across the country, including London (£2.1bn); Manchester (£400m); Birmingham (£400m); Liverpool and Cheshire (£150m); Scotland (£400m); Bristol and Bath (£150m); and Kent and the Thames Gateway (£150m).

The fund will be available to HSBC clients as well as customers who aren't registered with the bank.

In addition to the fund, a loan promotion will waive arrangement and security fees on all business loans worth between £1,000 and £300,000 until 31 July of this year.

Ian Stuart, HSBC's head of UK commercial banking, said the package was designed to underline the bank's commitment to all smaller firms in the UK, not just those with international operations. "We're hugely proud of our unique international network, but too often we've heard smaller, domestic businesses ask whether we are as committed to them as we are to big global firms.

"I want to show UK businesses that we are right behind them, whatever the size of their ambitions. We currently approve more than 85% of lending applications, and our net lending to business is up in 2015 – but we want to do even more. Our £8 billion fund is an aspiration, not a limit, and waiving fees from our business loans could save the average firm hundreds of pounds."

Speaking to the Daily Telegraph, Stuart said: "We want to make it as simple as we can for businesses to take their next step and that's why we've taken out fees and charges. It's open to any business, although we're always keen to help out firms that manufacture here, as it's important to the UK economy."

One million SMEs currently bank with HSBC. It is now offering 18 months of fee-free business banking for start-ups and 12 months for existing SMEs who switch banks.

The bank is also holding more than 300 workshops aimed at supporting 10,000 start-ups and SMEs that are looking to grow.

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